ECE-Rockspring JV acquires Czech mall

German property company ECE has carried out its first acquisition of an existing asset for its new EUR 740 mln European Prime Shopping Center Fund.

ECE teamed up with investment manager Rockspring in a 50:50 joint venture to buy the Olympia Shopping Centre in Brno, Czech Republic from international real estate developer-investor The Somerston Group. The financial details were not disclosed.

Opened in phases between 1998 and 2010, Olympia Shopping Centre is the largest regional shopping centre in the Czech Republic. Located in Brno, the country’s second largest city, the centre comprises approximately 85,000 m² of lettable area and is anchored by an Albert Hypermarket and two department stores, occupied by Asko and Kika.

The centre also has a large leisure element with a cinema, bowling alley, winter ice rink, climbing wall and the adjacent Olympia Park. ECE has taken over the management and leasing of the centre.

Jones Lang LaSalle advised the vendor. Richard Bloxam, Director in Jones Lang LaSalle EMEA Capital Markets team said: 'This deal underlines the significant attraction of CEE markets where there is strong investor demand for prime assets outside of capital cities driven by the strong domestic economy and consumer spending. The JV created to acquire this asset is a trend we are witnessing across Europe where equity is partnering with expertise to gain exposure to large and more management intensive assets'.

ECE announced the launch of the Prime Shopping Center Fund earlier this month. The fund has already secured three projects: the Stern-Center in Potsdam, Linden-Center in Berlin and Galeria Kaskada in Szczecin, which will be taken over following its completion in September 2011. The fund has acquired majority stakes in all three centres for a total equity investment of EUR 160 mln.

ECE said at the time that further acquisitions were planned, mainly in Germany but also in Poland, Hungary, the Czech Republic and Austria.